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VNM - BUY - Volume growth – prodigal son returns for FY15 - Update

Positive 4Q14 results affirmed our BUY rating. VNM has locked in price for most of its milk powder needed for FY15, boding well for a substantial expansion in gross profit margin. Improved domestic consumption and rebound in export will support top line growth, but probable absence of ASP hike will limit nominal growth. We raise our FY15 EPS forecast by 7% to VND7,270 (+20% vs FY14). We raise our target price by 5% to VND140,000, offering 39% upside.